SINGAPORE, March 20 (Reuters) - Singapore's High Court ruled against a bid by Standard Chartered and BSI Bank to be heard in applications seeking to wind up some foreign entities as part of efforts to
Standard Chartered, BSI lose bid to join Singapore cases winding up firms with 1MDB-linked assets
Singapore High Court Ruling on 1MDB-Linked Asset Recovery
SINGAPORE, March 20 (Reuters) - Singapore's High Court ruled against a bid by Standard Chartered and BSI Bank to be heard in applications seeking to wind up some foreign entities as part of efforts to recover assets linked to Malaysia's scandal-hit sovereign wealth fund 1MDB, according to a judgment issued on Thursday.
Details of the Court Judgment
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Standing of Banks and Individuals
Judge Aidan Xu held that Standard Chartered Bank(Singapore), BSI Bank and former BSI banker Hans Peter Brunnerdid not have standing to take part in four applications broughtby British Virgin Islands companies in liquidation, includingBrazen Sky and Blackstone Asia Real Estate Partners.
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Purpose of the Winding-Up Orders
The companies are seeking winding-up orders in Singaporeso their liquidators can pursue claims to unwind transactionsthat took place before Singapore adopted its currentcross-border insolvency rules.
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Reasoning Behind the Decision
Xu said the banks were not contingent creditors merelybecause they might later obtain costs orders, and a narrowexception for non-creditor participation did not apply.
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Previous Related Rulings
Last October, Xu dismissed a bid by foreign liquidators tosue Standard Chartered Bank and BSI Bank in Singapore overtransactions allegedly linked to 1MDB.
Background on the 1MDB Scandal
Scale and Impact of the Scandal
U.S. and Malaysian investigators say about $4.5 billionwas stolen from the 1Malaysia Development Bhd state fund between2009 and 2014 in a complex, globe-spanning scheme that resultedin the jailing of former prime minister Najib Razak.
Responses to the Court Decision
Standard Chartered's Statement
Bank's Position on the Ruling
"We note the decision of the Court. The bank will continueto defend vigorously against the meritless claims related tothese fraudulent companies," a Standard Chartered spokespersonsaid, in response to a Reuters query on Friday.
Other Parties' Responses
The liquidators and BSI did not immediately respond torequests for comment on Friday.
(Reporting by Yantoultra Ngui and Xinghui Kok; Editing by Thomas Derpinghaus)
